COMMERCE 3MC3 Lecture Notes - Lecture 4: Hershel Greene, Opportunity Cost, Snob
25 Nov 2018
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Document Summary
Childrens clothes only make up 1-2% of annual sales saint john store. Lost opportunity cost from not selling adult clothes instead. Kids outgrow their clothes quickly, so they don"t want to spend money. Limited clothing choices, design, kids might not want these styles. Pricing not high end or cheap per se, confusing middle ground. Started with several products but clothes caught attention. Sales grew by 1000% and by 2002 topped 11 million. Now at 48 locations, every province except newfoundland. Paid promotion, tv shows, canoeists and cyclists wearing clothing. 30-35 million dollars in revenue now probably, maybe even 40mil + Nicole is a risk taker, entrepreneur, experienced, hard worker. 3 locations / 48 locations so nicole is a significant player in the company. Product high quality, cotton canvas, simple basic and bright, hand sewn, born in canada, recognizable (ie. hershel bags), sailing gear, bags, adult and kids clothing, pillows, etc. Price children"s clothes are cheaper and same money to manufacture.
